Investment platform Smallcase is anticipating profitability in the current year as it focuses on increasing the amount transacted on the platform, according to Founder and CEO Vasanth Kamath.
Established in July 2016, smallcase offers baskets or portfolios of stocks or exchange-traded funds (ETFs) that represent a specific objective, theme, or strategy.
Kamath stated, “This is the year where we want to turn profitable as revenue has grown 80–100 per cent, while costs are growing at 15–20 per cent.”
The platform’s cumulative transaction value has risen to ₹60,000 crore in 2024, up from ₹2,500 crore in 2020. The user base has also expanded from 1.5 lakh to 1.5 crore during the same period, illustrating its growing popularity among retail and institutional investors.
In terms of growth strategies, Kamath mentioned that the company is planning to onboard research analysts (RAs) and registered independent advisers (RIAs) to cater to the evolving market needs. Currently, there are 120 creators on the platform, but the market’s increasing depth and new sectors like renewable energy and digital companies require more specialized analysts and wealth managers.
Smallcase’s revenue model is centered around creators, brokers, and wealth platforms, with creators contributing around 80 per cent of revenue, brokers 15 per cent, and wealth platforms 5 per cent.
The company recently partnered with Zerodha to launch Zerodha Fund House, which has managed ₹4,200 crore in assets within its first year of operation.
Looking ahead, Smallcase plans to introduce mutual fund smallcases, fixed-income options, global equities, and hybrid index funds. The company aims to expand its product offerings and participate in emerging categories like pension funds.
Overall, Smallcase is focused on driving profitability while continuing to innovate and meet the evolving needs of investors in the market.
